TWO HARB : Two Harbors Investment Corp. to Target Completion of a $250 Million RMBS Securitization in 2011
05/18/2011| 08:35am US/Eastern
Two Harbors Investment Corp. (NYSE: TWO; NYSE Amex: TWO.WS)
announced today that it has taken the first step toward setting up a
securitization issuance program by partnering with Barclays Bank PLC to
close on a $100 million mortgage loan warehouse facility, subject to
future increase. The facility will be used to aggregate prime jumbo
residential mortgage loans that the company will acquire from select
mortgage loan originators with whom it has chosen to build strategic
relationships, including those with a nationwide presence. Two Harbors
is targeting a $250 million deal size for its initial securitization,
with Barclays Capital acting as underwriter.
"This program is a natural expansion of our current business model and
will serve to complement and enhance the Two Harbors' MBS brand," said
Thomas Siering, Two Harbors' President and Chief Executive Officer. "We
believe we can create mortgage credit investments at attractive yields
resulting from high-quality loan origination and securitization while
further extending the runway for the non-Agency allocation in our
portfolio. It is an exciting development in our ongoing mission to
balance risk and reward in the mortgage sector for the benefit of our
About Two Harbors Investment Corp.
Two Harbors Investment Corp., a Maryland corporation, is a real estate
investment trust that invests in residential mortgage-backed securities.
Two Harbors is headquartered in Minnetonka, Minnesota, and is externally
managed and advised by PRCM Advisers, LLC, a wholly-owned subsidiary of
Pine River Capital Management L.P. Additional information is available
This press release includes "forward-looking statements" within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Actual results may differ from
expectations, estimates and projections and, consequently, readers
should not rely on these forward-looking statements as predictions of
future events. Words such as "target," "believe," "will," "create,"
"project," "anticipate," "intend," "plan," "may," "could," "should,"
"potential," "continue," and similar expressions are intended to
identify such forward-looking statements. These forward looking
statements involve significant risks and uncertainties that could cause
actual results to differ materially from expected results. Factors that
could cause actual results to differ include a failure or inability to
acquire mortgage loans as planned, a failure or inability to securitize
mortgage loans that are acquired, a failure or inability to build
successful relationships with loan originators, changes in interest
rates, the impact of new legislation or regulatory changes on our
operations, and unanticipated changes in overall market and economic
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made. Two
Harbors does not undertake or accept any obligation to release publicly
any updates or revisions to any forward-looking statement to reflect any
change in its expectations or any change in events, conditions or
circumstances on which any such statement is based. Additional
information concerning these and other risk factors is contained in Two
Harbors' most recent filings with the Securities and Exchange Commission
("SEC"). All subsequent written and oral forward looking statements
concerning Two Harbors or matters attributable to Two Harbors or any
person acting on its behalf are expressly qualified in their entirety by
the cautionary statements above.
Stockholders and warrant holders of Two Harbors, and other interested
persons, may find additional information regarding the company at the
Securities and Exchange Commission's Internet site at www.sec.gov
or by directing requests to: Two Harbors Investment Corp., 601 Carlson
Parkway, Suite 330, Minnetonka, MN 55305, telephone 612-238-3300.
Two Harbors Investment Corp.
Anh Huynh, 212-364-3221
© Business Wire 2011